The Richest Man in Babylon: what it teaches and how to pay yourself first every payday

What is The Richest Man in Babylon about?

George S. Clason was a Denver businessman who, in 1926, began publishing a series of pamphlets on thrift and money, told as parables set in ancient Babylon. Banks and insurance companies handed them out in large numbers, and the most famous one, “The Richest Man in Babylon,” gave its name to the book that collects them.

It is still in print: in English as The Richest Man in Babylon, in Spanish as El hombre más rico de Babilonia, with a new 2025 translation from Vintage Español, and in Portuguese as O homem mais rico da Babilônia, from HarperCollins Brasil. The stories follow Arkad, a man who started with nothing and explains to two old friends how he came to have money, along with other characters who learn to save, to stop overspending and to pay their debts on time.

Sources for this part:Penguin Random House, Penguin Random House, HarperCollins Brasil, El hombre más rico de Babilonia (The Richest Man in Babylon)

What does pay yourself first mean?

The book's central lesson is simple: part of everything you earn is yours to keep. In the story, Arkad realizes he was paying everyone except himself, and he learns to keep at least a tenth of every income before paying anything else.

The difference from saving “whatever is left” is the order. If you wait until the end of the month, some expense almost always swallows the leftovers. If you set your part aside on payday, you plan the month with what remains, and saving stops depending on luck. Mexico's Condusef puts it the same way: saving isn't keeping what's left over, and this method puts you and your goals first.

Sources for this part:El hombre más rico de Babilonia (The Richest Man in Babylon), Condusef, Comisión Nacional para la Protección y Defensa de los Usuarios de Servicios Financieros (México)

How much should you set aside: the book's 10% or more?

The book suggests at least 10% of what you earn. Public financial education agencies talk about a similar range. Condusef, in Mexico, recommends setting aside at least 10% of your income and says the amount can range from 10% to 20%, depending on your situation. Susep, in Brazil, calls saving 10% to 20% of the household's income every month the ideal.

They also add something important: if you can't reach that percentage, don't give up. Susep says to set a goal you can actually meet and start now, and the CFPB, the US consumer financial protection agency, notes that even a small amount gives some financial security. The percentage is a guide; what builds the habit is setting something aside every time you're paid.

Sources for this part:El hombre más rico de Babilonia (The Richest Man in Babylon), Condusef, Comisión Nacional para la Protección y Defensa de los Usuarios de Servicios Financieros (México), Susep, Superintendência de Seguros Privados (Brasil), Consumer Financial Protection Bureau (CFPB, Estados Unidos)

How do you pay yourself first on payday?

Decide the amount before the money arrives, with a cool head: a percentage or a fixed figure. On payday, move it somewhere separate from your everyday money. Condusef suggests automating it with scheduled transfers, ideally the same day you get paid, and the CFPB mentions splitting your direct deposit between two accounts when your employer allows it.

Then build the month around what's left. An example with round numbers: if you're paid 1,000 and set aside 10%, you keep 100 and plan your spending with 900. At 15%, you keep 150 and have 850 left. The currency doesn't matter: the math is the same in pesos, soles, reais or dollars.

If you schedule an automatic transfer, make sure the money is there that day. The CFPB warns that if your account doesn't have enough when the transfer goes out, you could end up paying overdraft fees.

Sources for this part:Condusef, Comisión Nacional para la Protección y Defensa de los Usuarios de Servicios Financieros (México), Consumer Financial Protection Bureau (CFPB, Estados Unidos)

What should you pay yourself first for? Start with the unexpected

Having a reason helps you stick with it. The CFPB says a specific savings goal helps you stay motivated, and it suggests an emergency fund as a first goal: money set aside only for costs you didn't see coming, such as a repair, a medical bill or a drop in income.

How much? It depends on your country and your life. Condusef mentions a fund worth 3 to 6 months of your salary; the CFPB suggests thinking about the unexpected costs you've had before and what they cost. Once the fund is on its way, what you set aside can go to other goals with a name: a trip, your studies or getting out of debt.

Sources for this part:Consumer Financial Protection Bureau (CFPB, Estados Unidos), Condusef, Comisión Nacional para la Protección y Defensa de los Usuarios de Servicios Financieros (México)

Who is it for, and when is it harder?

Pay yourself first works best for people who get paid on a set date: payday is the natural moment to set money aside. If your income changes from month to month, you can set aside a percentage of each payment instead of a fixed figure, so the amount rises and falls with what comes in.

It's harder when your pay barely covers the essentials. In that case there's no point setting aside money you'll have to take back a week later: start with a figure you can keep up, even a small one, and raise it when the month allows.

And if one month you have to use what you saved for a real emergency, that's not a failure: the CFPB says not to be afraid to use it if you need it, and then to work on building it back up.

Sources for this part:El hombre más rico de Babilonia (The Richest Man in Babylon), Consumer Financial Protection Bureau (CFPB, Estados Unidos)

How to do it in Oslo

In Oslo, what you set aside has a name: a goal. In Money, under Goals, tap “New goal” and answer “Where do you keep it?”, “What are you saving for?”, “How much do you need?” and, if you like, “By when?”. If you already have something saved, enter it in “How much have you saved so far?”. Oslo also sets up an “Emergency fund” for you under Accounts, which doesn't take up a slot in your plan.

On payday, log your income with the + button in the middle of the bar, then open your goal and tap “Log savings”: you choose the amount and the account you're setting it aside from. Oslo only records it; you move the money yourself in your bank or app, so do both steps the same day.

On Today, the “You have” figure no longer counts that money: tap “Why do I have this available?” and you'll see it subtracted as “Saved toward your goals”. That way you plan the month with what's really left. On the free plan you can have up to three goals. The Personal plan lets you have as many as you want.